Guide from
[insert your firm’s name here]
Tel: [insert telephone number here] Email: [insert email address here] [Insert web address here]
[Insert a line about your business here]
Getting a grant for your business
Securing grant funding could really help your business develop and grow. But even
experts can find it difficult to keep track of the hundreds of different grant schemes that
keep appearing and then disappearing.
This briefing outlines the kind of grants available to small and medium-sized businesses. It
explains the criteria a project must meet to qualify for a grant, and the potential benefits
and pitfalls involved in applying.
This briefing covers:
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which business activities are most likely to qualify
factors that could affect your eligibility
how to identify grants you may be entitled to
how to apply
1 Be prepared
Don’t waste time trying to get a grant unless you are prepared to overcome four potential
obstacles first.
1.1 You must be ready to put up some of your own money.
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It is extremely rare for a grant to finance 100% of the costs of any project.
Grants typically cover 15%-60% of the total finance required for a project.
Even if a larger proportion of the project cost is available, you will still need to invest
time and resources in researching and applying for the grant.
1.2 Grants are usually only available for specified projects – for example, investment in
capital equipment and job creation, researching and developing a new product or
process, or training programmes.
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The normal, organic process of company development does not usually qualify.
However, there may be support for small and medium-sized enterprises that will
accelerate investment and job creation.
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1.3 You must have a clear project plan.
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You will probably need to show how the project ties in with the strategic direction
of your business as outlined in your business plan.
1.4 Grant schemes are for projects that are not already under way, and almost always
impose certain restrictions.
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The project must help towards achieving the objectives of the grant provider –
usually a department or agency of local, national or European government.
In most cases, you must be able to show that the project would not take place and
achieve the same benefits without the grant.
2 National and regional grants
National and regional grants usually focus on particular business purposes or activities.
These themes are:
2.1 Investment; there are regional grants that support growth through capital investment
and job creation.
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The location of your business may entitle you to a grant. You may be eligible for a
range of targeted grants and support from both the UK government and the
European Commission (EC) if your business is in an economically depressed
area, especially if it is one with high unemployment. These areas include those in
general industrial decline, those where major traditional industries such as steel,
coal, textiles and fishing have collapsed, and some rural and inner-city areas.
There are several different tiers of funding which reflect both the relative economic
needs of different regions and the size of the enterprise.
2.2 Innovation; there is a wide range of grant schemes that encourage research and
development (R&D) activities.
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A comprehensive range of funding is available through the Department for
Business, Innovation & Skills (BIS) programmes. These can offer support from
investigating an idea through to proof of concept and development. Visit
www.bis.gov.uk.
R&D grants that focus on specific industries are periodically launched (eg the
Carbon Trust, DEFRA and WRAP have all launched such grants).
Various European Union (EU) programmes provide funding to small and mediumsized businesses wanting to take part in EC research framework programmes in
the field of science and technology. Visit ec.europa.eu/research/sme-techweb.
R&D activities can be supported by grants that cover the cost of high-level
researchers.
Such schemes can be EU or UK sponsored and can encourage collaboration with
academic institutions.
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There are also tax incentives that support R&D activities.
2.3 Energy and the environment; these schemes recognise the additional cost for
businesses that adopt or engage in investments that improve energy efficiency and
environmental improvements.
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R&D programmes are available to companies working on developing energy and
environmental products.
Grant schemes may be available for new or refurbished buildings that aim to
improve energy use.
Capital allowances are also available to businesses that install energy-saving equipment
and processes.
There are many other grants available (see 4).
3 Other grant areas
Other grants are available depending on the location and type of your business.
3.1 Exports: support is often available to businesses looking to export goods they
manufacture.
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UK Trade & Investment (UKTI) offers funding to help exporters, as well as a range
of charged-for, but subsidised, services. Contact UKTI (www.ukti.gov.uk;
020 7215 5000).
3.2 Logistics and freight: schemes that promote alternatives to road haulage are often
available.
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Where a shift to alternative forms of transport that will have a large and
measurable impact on local and national congestion is possible, there may be
grants available.
3.3 Industry-specific grants, where local or national schemes target individual industries
that need promotion.
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Themes such as rural diversification, crafts, tourism and agriculture have been
featured.
Grants may become available from time to time to address local industry issues
so it is worth staying in touch with local authorities and agencies.
3.4 Some local grants are intended to help new businesses and boost employment.
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Local support (eg subsidised rent and rates) is often available to encourage small
businesses to start up in particular areas. Look at business and industrial parks
that may offer incentives. For hi-tech enterprises, examine the benefits presented
by science parks (www.ukspa.org.uk) and local incubator centres.
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4 Identifying possible grants
There are many different grant schemes in existence. You need to identify the few grants
your business or project could be eligible for.
4.1 GRANTfinder (www.grantfinder.co.uk) is a subscription database which identifies
European, national, government and charitable grant schemes
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A research help desk is available to help you narrow down the range of schemes.
4.2 Try other sources of free or subsidised information.
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There are a number of free and subscription websites that list available grants.
By answering a few questions you can pinpoint a shortlist of grants for which your
project may qualify. Try www.j4bgrants.co.uk or www.grantnet.com.
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Your bank and your trade association may also be able to offer advice.
4.3 Talk to the administrators of any grant schemes that seem to fit your situation.
These might include:
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the EC.
Avoid calling the commission’s main switchboard. Instead, send an email or call
the section which deals with the scheme you are specifically interested in
(ec.europa.eu/contracts_grants).
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Government departments, such as BIS (www.bis.gov.uk).
4.4 If necessary, get professional help.
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It is probably worth paying for help to apply for any grants worth £50,000 or more.
Experts can help you to ‘model’ your project so that it is more likely to meet the
qualifying criteria of the grant.
Some accountants provide grant services and there are consultants dedicated to
securing external funding. Check their experience of successfully obtaining grants
for businesses similar to yours.
Negotiate the fees.
Flat-rate fees may seem less expensive in the first instance but must be paid even
if you do not get a grant. Success-based fees demonstrate that the consultants will
share the risk based on their confidence in your project.
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5 Making a start
5.1 Make personal contact with an individual involved in administering the scheme.
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You will get advice on whether it is worth applying for.
You can often get help to complete the application form.
5.2 Find out answers to some basic questions.
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Is the scheme open and when will it close? Will funds be available after the
application has been processed?
 When are grants handed out?
Some schemes only pay out money to successful applicants once a year.
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What does the scheme aim to achieve?
It will help to know the type of projects funded in the past.
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How long is the application process, and what does it involve?
5.3 Submit a proposal (see 6).
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This usually involves filling in a form.
5.4 Wait for the decision (see 8).
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If you are awarded a grant after a long delay, and the situation has changed since
your initial application, it may be possible to adapt and refine your project idea.
6 The application
Your grant application should not be a work of fiction but it should show your proposals in
the best possible light.
You will need to provide:
6.1 a detailed project description
6.2 an explanation of the potential benefits the project offers
 These benefits must fit in with the aims of the grant scheme.
 They might include specific benefits to the local community, to the region, your
industry or to British exports.
6.3 a detailed work plan, indicating who will do what and by when.
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This should include full costings.
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6.4 Details of your own relevant experience and performance.
 Explain how your own background, experience and expertise make success
probable.
If there seems to be a significant risk of the project failing, you are unlikely to be
given a grant.
7 Grant payments
7.1 Plan your cashflow.
 You might have to wait to be reimbursed so you may need to make arrangements
for a bridging loan.
7.2 Grant money is generally handed over according to an agreed schedule.
Payments may be made:
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in instalments, at fixed periods
in arrears, against proof of actual expenditure
with some payments up front and the rest as you meet the stipulated requirements
at each stage.
For example, a payment might be conditional on the project employing a certain
number of people.
7.3 Keep detailed records.
The grant-providers will want to monitor how the money is being used.
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This may involve visits to your premises or you may have to visit them to present
a report.
There may be a final audit before you are given the last payment.
8 Application timescales
Do not expect an immediate decision on a grant application. You may have to wait some
time for it to be considered.
8.1 Local grants, such as those given out by local councils, are usually processed fairly
quickly.
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You may have to wait up to six weeks for a decision. Such grants generally
involve simple application procedures.
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8.2 National or European grants typically take two to six months to obtain, but can take
up to a year.
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You are usually able to submit a relatively simple stage 1 application in the first
instance.
This enables the grant provider to assess whether your project stands a serious
chance of being funded.
A stage 1 application form will only be two to five pages long but it can take two or
three days to prepare because you must include costings.
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You can then decide whether or not to proceed with a full stage 2 application.
A stage 2 form is usually 15 to 25 pages.
Expert’s quote
‘Remember to focus on the funding provider's outcomes; they are, after all, looking for
solutions to identified problems. Take time to find out what their policy is; this could simply
be a mission statement or recommendations from a recent consultation. And make sure
your application is the one to spark their interest.’
Rebecca Stark, GRANTfinder
Expert contributors
Thanks to Rebecca Stark, GRANTfinder: 0844 874 0739
John Devonald, PNO Consultants: www.pnoconsultants.com
Last updated 01.11.15
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ACCA LEGAL NOTICE
This is a basic guide prepared by ACCA UK's Technical Advisory Service for members and their clients. It
should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be
obtained, where necessary.
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